In Romania, MOL is an about EUR1 billion business with 200 gas stations and the ambition to become a top three player in the medium run.
The company is now the fourth largest in its industry in Romania and took on an aggressive role last year, helped by the acquisition of the 42 remaining Agip gas stations in the country from Italy’s ENI in a regional deal.
MOL’s appetite for acquisitions is far from satisfied, but the market is hardly generous with opportunities at this time, as Ferenc Horvath himself says.
“We are interested in upstream (exploration and production i.e.) deals but cannot find sellers willing to sell at today’s prices.”
MOL has been looking at this particular segment for four or five years now, but is not under any pressure to buy and will not pay just for the sake of making a deal, Horvath said.
The upstream segment is the worst hit by oil price slump from $115 last summer to less than $50. This trend caused major producers to slash investment budgets and shelve exploration projects, which in turn affected the suppliers of equipment and services to this industry.
MOL’s position is sound, particularly, as most of its assets are concentrated in the refining and marketing area, a segment that has become a profit center over the past few years mostly because of the rise in consumption, Ferenc Horvath says.
Since MOL is financially sound, its appetite for acquisitions is high, but the market does not offer it much of a choice to spend its money on.
The group is also interested in the refineries in the region, because it seeks integration. However, its focus is now on retail and logistics assets because they bring it closer to the consumer. It is negotiating deals, some of which include the Romanian market, the MOL official added.
(English version by Loredana Fratila-Cristescu)